NWT Uranium drops court case over Union loan

2013-01-17 18:45 ET - Street Wire

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by Mike Caswell

NWT Uranium Corp. has dropped the case it launched in the Supreme Court of British Columbia against Union Securities Ltd. over a $500,000 loan. The company claimed that it had lent the money to Union as an advance on a $10.8-million financing, and said that Union had pledged all of its assets as security. NWT's reasons for dropping the lawsuit are not clear. The company filed a notice of discontinuance on Monday, Jan. 15, and stated in a requisition that the case was adjourned by consent, which usually occurs when a matter is settled out of court.

NWT launched the case on Dec. 10, 2012, when it filed a petition at the Vancouver courthouse. It said that it had advanced $500,000 to Union in March, 2012, when the firm was in financial difficulty. The company had agreed to invest $10.8-million, and the $500,000 represented a refundable deposit.

Ultimately the $10.8-million financing did not complete, and NWT demanded the return of the $500,000. According to the petition, the advance was secured by all of Union's assets, but shortly after NWT demanded the money back Union announced a deal to sell all of its accounts to PI Financial Corp.

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